The Minnesota Senate is doubling down on sports betting. The Senate Tax Committee has put its chips on the table, advancing legislation on Thursday that seeks to legalize Sports Betting in the North Star State. The move marks a significant push from last year, making clear the committee's intent to finally bring sports betting into Minnesota's fold.
Amendments to the bill, led by Senator Aric Putnam of St. Cloud, have now set the tax rate at a cool 20% on net revenues from sports betting—a savvy bid to quickly and confidently secure a revenue stream for the state's coffers. According to a statement acquired by Senate DFL MN, the newfound funds are earmarked for a variety of uses: tax relief for charitable gaming outfits and money for problem-wagering programs, with a slice of the pie also jazzing up Minnesota's tourism and supporting youth sports.
Senator Matt Klein, the bill's author, heralded the committee's work, sharing his appreciation for their dedication to hashing out a fair deal. He said, "The changes made in the Senate Taxes Committee today have made this a better bill for Minnesotans. "I am thankful for the committee's thoughtful consideration of this legislation and willingness to work toward the best balance of needs and interests." His sentiments were echoed in the details, with fractions of the revenue being allocated across several community and state programs.
Indeed, with the funding formula nailed down, charitable organizations engaged in gaming could stand to see a 20% tax relief benefit, while awareness programs for problem wagering are slated to catch a 10% boost. Not to be sidelined, Explore Minnesota Tourism is looking to bag 15% for luring large sporting events, and the Minnesota State High School League is set to catch a 5% handoff to support youth sports and activities. Even the race tracks aren't being left in the dust, with the Minnesota Racing Commission seeing a 5% kickback to invest in infrastructure and programming.
The ball is now in the court of the Senate Finance Committee, as SF1949 passed the Senate Taxes Committee as amended and looks towards the next hurdle in its legislative race. The legislation, if it crosses the finish line, will bring Minnesota up to speed with numerous other states that have already welcomed sports betting into their markets.
